“Our results for the first quarter of 2018 were in-line with our
expectations as we continue to transform our company as part of Quad
3.0,” said Joel Quadracci, Quad/Graphics Chairman, President & Chief
Executive Officer. “As a marketing solutions provider, we address our
clients’ marketing challenges and solve their unique problems through a
comprehensive offering. Our recent acquisition of Ivie & Associates and
additional investment in Rise Interactive continue to accelerate our
transformation, creating a powerful integrated marketing platform. Not
only are we able to fulfill traditional agency roles, but we also
provide integrated marketing execution across channels. In this way, we
deliver increased value, helping our clients reduce complexity while
improving process efficiencies and marketing spend effectiveness.”

Quadracci added: “To fuel our Quad 3.0 transformation, we have a strong
and engaged workforce, backed by state-of-the-art technology that
continues to drive productivity improvements to generate the earnings
and cash flow necessary to further advance our value-creating
transformation. Our goal, as always, is to remain the high-quality,
low-cost producer across the continuum – from traditional print to
multichannel execution.”

Summary Results

Net sales for the first quarter ended March 31, 2018, were $968 million,
representing a 3.1% decrease as compared to 2017. Organic sales declined
5.1% due to ongoing print industry volume and pricing pressures after
excluding acquisitions (2.0% impact), pass-through paper sales (-0.2%
impact) and foreign exchange (0.2% impact), and is consistent with
previous guidance. The Company incurred a net loss of $3.5 million, or
$0.07 per share, for the three months ended March 31, 2018, which
included a special $22 million non-cash employee stock ownership plan
contribution as part of the benefit of tax reform. Excluding the special
contribution and restructuring charges, Non-GAAP Adjusted Diluted
Earnings Per Share for the first quarter of 2018 improved 12% to $0.58
compared to $0.52 in the first quarter of 2017. First quarter 2018
Non-GAAP Adjusted EBITDA was $111 million compared to $119 million in
the first quarter of 2017, and Adjusted EBITDA Margin was 11.4% compared
to 11.9% in 2017.

Net cash provided by operating activities was $2 million for the first
quarter 2018, compared to $63 million in the first quarter of 2017, and
Free Cash Flow decreased $62 million to a negative $22 million. These
variances were primarily due to expected timing differences in 2018
versus 2017 for cash generated from working capital, which will be
weighted more towards the fourth quarter. As a reminder, the Company
generates the majority of its Free Cash Flow in the second half of the
year.

“Our first quarter results were as expected and we remain on track with
our 2018 guidance,” said Dave Honan, Quad/Graphics Executive Vice
President & Chief Financial Officer. “We ended the first quarter of 2018
with a Debt Leverage Ratio of 2.28x, which includes the impact from the
Ivie and Rise investments. Our leverage continues to be well within our
long-term targeted range of 2.0x to 2.5x. We believe the strength of our
balance sheet gives us the ability to balance our use of capital and
provide sufficient opportunity for investment in our Quad 3.0
transformation.”

Quad/Graphics’ next quarterly dividend of $0.30 per share will be
payable on June 8, 2018, to shareholders of record as of May 21, 2018.

Quarterly Conference Call

Quad/Graphics (NYSE: QUAD) will hold a conference call at 10 a.m. ET on
Wednesday, May 2, to discuss first quarter 2018 results. The call will
be hosted by Joel Quadracci, Quad/Graphics Chairman, President & Chief
Executive Officer, and Dave Honan, Quad/Graphics Executive Vice
President & Chief Financial Officer. The full earnings release and slide
presentation will be concurrently available on the Investors section of
Quad/Graphics' website at http://investors.qg.com.

Participants can pre-register for the webcast by navigating to http://dpregister.com/10118254.
Participants will be given a unique PIN to gain immediate access to the
call on May 3, bypassing the live operator. Participants may
pre-register at any time, including up to and after the call start time.

Alternatively, participants without internet access may dial in on the
day of the call as follows:

U.S. Toll-Free: 1-877-328-5508

International Toll: 1-412-317-5424

Telephone playback will be available shortly after the conference call
ends, accessible as follows:

U.S. Toll-Free: 1-877-344-7529

International Toll: 1-412-317-0088

Replay Access Code: 10118254

The playback will be available until June 2, 2018.

Forward-Looking Statements

This press release contains certain "forward-looking statements" within
the meaning of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements include statements regarding, among other
things, our current expectations about the Company's future results,
financial condition, revenue, earnings, free cash flow, margins,
objectives, goals, strategies, beliefs, intentions, plans, estimates,
prospects, projections and outlook of the Company and can generally be
identified by the use of words or phrases such as "may," "will,"
"expect," "intend," "estimate," "anticipate," "plan," "foresee,"
"project," "believe," "continue" or the negatives of these terms,
variations on them and other similar expressions. These forward-looking
statements involve known and unknown risks, uncertainties and other
factors which may cause actual results to be materially different from
those expressed in or implied by such forward-looking statements.
Forward-looking statements are based largely on the Company's
expectations and judgments and are subject to a number of risks and
uncertainties, many of which are unforeseeable and beyond our control.

The factors that could cause actual results to materially differ
include, among others: the impact of decreasing demand for printed
materials and significant overcapacity in the highly competitive
commercial printing industry creates downward pricing pressures and
potential underutilization of assets; the impact of electronic media and
similar technological changes, including digital substitution by
consumers; the inability of the Company to reduce costs and improve
operating efficiency rapidly enough to meet market conditions; the
impact of changing future economic conditions; the failure of clients to
perform under contracts or to renew contracts with clients on favorable
terms or at all; the impact of increased business complexity as a result
of the Company's transformation into a marketing services provider; the
impact of regulatory matters and legislative developments or changes in
laws, including changes in cyber-security, privacy and environmental
laws; the impact of fluctuations in costs (including labor and
labor-related costs, energy costs, freight rates and raw materials) and
the impact of fluctuations in the availability of raw materials; the
failure to attract and retain qualified production personnel; the impact
of changes in postal rates, service levels or regulations; the fragility
and decline in overall distribution channels, including newspaper
distribution channels; the failure to successfully identify, manage,
complete and integrate acquisitions and investments; the impact of risks
associated with the operations outside of the United States, including
costs incurred or reputational damage suffered due to improper conduct
of its employees, contractors or agents; significant capital
expenditures may be needed to maintain the Company's platform and
processes and to remain technologically and economically competitive;
the impact of the various restrictive covenants in the Company's debt
facilities on the Company's ability to operate its business; the impact
on the holders of Quad/Graphics class A common stock of a limited active
market for such shares and the inability to independently elect
directors or control decisions due to the voting power of the class B
common stock; the impact of an other than temporary decline in operating
results and enterprise value that could lead to non-cash impairment
charges due to the impairment of property, plant and equipment and other
intangible assets; and the other risk factors identified in the
Company's most recent Annual Report on Form 10-K, as such may be amended
or supplemented by subsequent Quarterly Reports on Form 10-Q or other
reports filed with the Securities and Exchange Commission.

Except to the extent required by the federal securities laws, the
Company undertakes no obligation to publicly update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise.

The Company believes that these Non-GAAP measures, when presented in
conjunction with comparable GAAP measures, provide additional
information for evaluating Quad/Graphics' performance and are important
measures by which Quad/Graphics' management assesses the profitability
and liquidity of its business. These Non-GAAP measures should be
considered in addition to, not as a substitute for or superior to, net
earnings (loss) as a measure of operating performance or to cash flows
provided by operating activities as a measure of liquidity. These
Non-GAAP measures may be different than Non-GAAP financial measures used
by other companies. Reconciliation to the GAAP equivalent of these
Non-GAAP measures are contained in tabular form on the attached
unaudited financial statements.

About Quad/Graphics

Quad/Graphics (NYSE:QUAD) is a leading marketing solutions provider. The
Company leverages its strong print foundation as part of a much larger,
robust integrated marketing services platform that helps marketers and
content creators improve the efficiency and effectiveness of their
marketing spend across offline and online media channels. With a
consultative approach, worldwide capabilities, leading-edge technology
and single-source simplicity, Quad/Graphics has the resources and
knowledge to help a wide variety of clients in multiple vertical
industries, including retail, publishing and healthcare. Quad/Graphics
provides a diverse range of digital and print and related products,
services and solutions from multiple locations throughout North America,
South America and Europe, and strategic partnerships in Asia and other
parts of the world. For additional information visit www.QG.com.

QUAD/GRAPHICS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

For the Three Months Ended March 31, 2018 and 2017

(in millions, except per share data)

(UNAUDITED)

Three Months Ended March 31,

2018

2017

Net sales

$

967.5

$

998.6

Cost of sales

792.4

781.1

Selling, general and administrative expenses

86.9

98.6

Depreciation and amortization

56.2

58.7

Restructuring, impairment and transaction-related charges

24.9

9.2

Total operating expenses

960.4

947.6

Operating income

$

7.1

$

51.0

Interest expense

17.3

18.2

Net pension income

(3.1

)

(2.6

)

Loss on debt extinguishment

—

2.6

Earnings (loss) before income taxes and equity in (earnings) loss of
unconsolidated entity

(7.1

)

32.8

Income tax (benefit) expense

(3.3

)

6.7

Earnings (loss) before equity in (earnings) loss of unconsolidated
entity

(3.8

)

26.1

Equity in (earnings) loss of unconsolidated entity

(0.3

)

0.7

Net earnings (loss)

(3.5

)

25.4

Net (earnings) loss attributable to noncontrolling interests

—

—

Net earnings (loss) attributable to Quad/Graphics common
shareholders

$

(3.5

)

$

25.4

Earnings (loss) per share attributable to Quad/Graphics common
shareholders

Impairment charges were for certain property, plant and equipment no
longer being utilized in production as a result of facility
consolidations.

(c)

Transaction-related charges consisted of professional service fees
related to business acquisition and divestiture activities.

(d)

Integration costs were primarily costs related to the integration of
acquired companies.

(e)

Other restructuring charges were primarily from costs to maintain
and exit closed facilities, as well as lease exit charges,.

(2)

Due to a change in United States GAAP that requires pension income
to be excluded from operating income, the Company will report
Adjusted EBITDA excluding net pension income. This change is
reflected in both periods presented.

(3)

The Company made a $22.3 million non-cash contribution to the
Company's employee stock ownership plan during the three months
ended March 31, 2018.

(4)

The $2.6 million loss on debt extinguishment recorded during the
three months ended March 31, 2017, relates to the second amendment
to the Company's April 28, 2014 Senior Secured Credit Facility,
completed on February 10, 2017.

(5)

The equity in (earnings) loss of unconsolidated entity includes the
results of operations for an investment in an entity where
Quad/Graphics has the ability to exert significant influence, but
not control, which is accounted for using the equity method of
accounting.

In addition to financial measures prepared in accordance with accounting
principles generally accepted in the United States of America (GAAP),
this earnings announcement also contains Non-GAAP financial measures,
specifically EBITDA, EBITDA Margin, Adjusted EBITDA, Adjusted EBITDA
Margin, Free Cash Flow, Debt Leverage Ratio and Adjusted Diluted
Earnings Per Share. The Company believes that these Non-GAAP measures,
when presented in conjunction with comparable GAAP measures, provide
additional information for evaluating Quad/Graphics' performance and are
important measures by which Quad/Graphics' management assesses the
profitability and liquidity of its business. These Non-GAAP measures
should be considered in addition to, not as a substitute for or superior
to, net earnings (loss) as a measure of operating performance or to cash
flows provided by operating activities as a measure of liquidity. These
Non-GAAP measures may be different than Non-GAAP financial measures used
by other companies.

QUAD/GRAPHICS, INC.

RECONCILIATION OF GAAP TO NON-GAAP MEASURES

FREE CASH FLOW

For the Three Months Ended March 31, 2018 and 2017

(in millions)

(UNAUDITED)

Three Months Ended March 31,

2018

2017

Net cash provided by operating activities

$

2.2

$

63.3

Less: purchases of property, plant and equipment

(24.2

)

(23.4

)

Free Cash Flow (Non-GAAP)

$

(22.0

)

$

39.9

In addition to financial measures prepared in accordance with accounting
principles generally accepted in the United States of America (GAAP),
this earnings announcement also contains Non-GAAP financial measures,
specifically EBITDA, EBITDA Margin, Adjusted EBITDA, Adjusted EBITDA
Margin, Free Cash Flow, Debt Leverage Ratio and Adjusted Diluted
Earnings Per Share. The Company believes that these Non-GAAP measures,
when presented in conjunction with comparable GAAP measures, provide
additional information for evaluating Quad/Graphics' performance and are
important measures by which Quad/Graphics' management assesses the
profitability and liquidity of its business. These Non-GAAP measures
should be considered in addition to, not as a substitute for or superior
to, net earnings (loss) as a measure of operating performance or to cash
flows provided by operating activities as a measure of liquidity. These
Non-GAAP measures may be different than Non-GAAP financial measures used
by other companies.

QUAD/GRAPHICS, INC.

RECONCILIATION OF GAAP TO NON-GAAP MEASURES

DEBT LEVERAGE RATIO

As of March 31, 2018 and December 31, 2017

(in millions, except ratio)

(UNAUDITED)

March 31,

December 31,

2018

2017

Total debt and capital lease obligations on the condensed
consolidated balance sheets

The calculation of Adjusted EBITDA for the trailing twelve months
ended March 31, 2018, and December 31, 2017, was as follows:

Add

Subtract

Trailing Twelve Months Ended

Year Ended

Three Months Ended

December 31,

March 31,

March 31,

March 31,

2017 (a)

2018

2017

2018

Net earnings (loss)

$

107.2

$

(3.5

)

$

25.4

$

78.3

Interest expense

71.1

17.3

18.2

70.2

Income tax (benefit) expense

(16.0

)

(3.3

)

6.7

(26.0

)

Depreciation and amortization

232.5

56.2

58.7

230.0

EBITDA (Non-GAAP)

$

394.8

$

66.7

$

109.0

$

352.5

Restructuring, impairment and transaction-related charges

60.4

24.9

9.2

76.1

Net pension income (b)

(9.6

)

(3.1

)

(2.6

)

(10.1

)

Employee stock ownership plan contribution

—

22.3

—

22.3

Loss on debt extinguishment

2.6

—

2.6

—

Equity in loss (gain) of unconsolidated entity

—

(0.3

)

0.7

(1.0

)

Adjusted EBITDA (Non-GAAP)

$

448.2

$

110.5

$

118.9

$

439.8

______________________________

(a)

Financial information for the year ended December 31, 2017, is
included as reported in the Company's 2017 Annual Report on Form
10-K filed with the SEC on February 21, 2018.

(b)

Due to a change in United States GAAP that requires pension income
to be excluded from operating income, the Company will report
Adjusted EBITDA excluding net pension income. This change is
reflected in all periods presented.

(2)

As permitted by the Company's senior secured credit facility,
certain pro forma financial information related to the acquisition
of Ivie & Associates ("Ivie") was included in calculating the Debt
Leverage Ratio as of March 31, 2018, and December 31, 2017. As the
acquisition of Ivie was completed on February 21, 2018, the $14.1
million pro forma Adjusted EBITDA represents the period from April
1, 2017, to February 20, 2018. Adjusted EBITDA for Ivie was
calculated in a consistent manner with the calculation above for
Quad/Graphics. Ivie's financial information has been consolidated
within Quad/Graphics' financial results since the date of
acquisition. If the eleven months of pro forma Adjusted EBITDA for
Ivie was not included in the calculation, the Company's Debt
Leverage Ratio would have been 2.35x as of March 31, 2018.

In addition to financial measures prepared in accordance with accounting
principles generally accepted in the United States of America (GAAP),
this earnings announcement also contains Non-GAAP financial measures,
specifically EBITDA, EBITDA Margin, Adjusted EBITDA, Adjusted EBITDA
Margin, Free Cash Flow, Debt Leverage Ratio and Adjusted Diluted
Earnings Per Share. The Company believes that these Non-GAAP measures,
when presented in conjunction with comparable GAAP measures, provide
additional information for evaluating Quad/Graphics' performance and are
important measures by which Quad/Graphics' management assesses the
profitability and liquidity of its business. These Non-GAAP measures
should be considered in addition to, not as a substitute for or superior
to, net earnings (loss) as a measure of operating performance or to cash
flows provided by operating activities as a measure of liquidity. These
Non-GAAP measures may be different than Non-GAAP financial measures used
by other companies.

QUAD/GRAPHICS, INC.

RECONCILIATION OF GAAP TO NON-GAAP MEASURES

ADJUSTED DILUTED EARNINGS PER SHARE

For the Three Months Ended March 31, 2018 and 2017

(in millions, except per share data)

(UNAUDITED)

Three Months Ended March 31,

2018

2017

Earnings (loss) before income taxes and equity in (earnings) loss of
unconsolidated entity

$

(7.1

)

$

32.8

Restructuring, impairment and transaction-related charges

24.9

9.2

Employee stock ownership plan contribution

22.3

—

Loss on debt extinguishment

—

2.6

40.1

44.6

Income tax expense at normalized tax rate (1)

10.0

17.8

Adjusted net earnings (Non-GAAP)

$

30.1

$

26.8

Basic weighted average number of common shares outstanding

50.1

49.1

Plus: effect of dilutive equity incentive instruments (Non-GAAP)

2.0

2.4

Diluted weighted average number of common shares outstanding
(Non-GAAP)

52.1

51.5

Adjusted Diluted Earnings Per Share (Non-GAAP) (2)

$

0.58

$

0.52

Diluted Earnings (Loss) Per Share (GAAP)

$

(0.07

)

$

0.49

Restructuring, impairment and transaction-related charges per share

0.48

0.18

Employee stock ownership plan contribution per share

0.43

—

Loss on debt extinguishment per share

—

0.05

Income tax (benefit) expense from condensed consolidated statement
of operations per share

(0.06

)

0.13

Income tax expense at normalized tax rate per share (1)

(0.19

)

(0.34

)

Equity in (earnings) loss of unconsolidated entity from condensed
consolidated statement of operations per share

A normalized income tax rate of 25% was used for the three months
ended March 31, 2018, which reflects changes related to the Tax Cuts
and Jobs Act that was enacted in December 2017. The Company used a
normalized income tax rate of 40% for the three months ended March
31, 2017, consistent with the normalized rate used prior to the
enactment of the Tax Cuts and Jobs Act.

In addition to financial measures prepared in accordance with accounting
principles generally accepted in the United States of America (GAAP),
this earnings announcement also contains Non-GAAP financial measures,
specifically EBITDA, EBITDA Margin, Adjusted EBITDA, Adjusted EBITDA
Margin, Free Cash Flow, Debt Leverage Ratio and Adjusted Diluted
Earnings Per Share. The Company believes that these Non-GAAP measures,
when presented in conjunction with comparable GAAP measures, provide
additional information for evaluating Quad/Graphics' performance and are
important measures by which Quad/Graphics' management assesses the
profitability and liquidity of its business. These Non-GAAP measures
should be considered in addition to, not as a substitute for or superior
to, net earnings (loss) as a measure of operating performance or to cash
flows provided by operating activities as a measure of liquidity. These
Non-GAAP measures may be different than Non-GAAP financial measures used
by other companies.